The Effect of Working Capital Management on the Performance in Tehran Stock Exchange Companies

نویسندگان [English]

AmirHossien Erza1؛ Farnaz Seifi2

1Allameh Tabataba'i University Financial Management

2Master of financial management, Allameh Tabataba&#039;i University

چکیده [English]

The measurement of corporate efficiency has been always noticed by researchers in the evaluation of performance due to its importance. This paper has investigated the relationship between some of important working capital management policies with firm efficiency. Initially, the efficiency of the listed companies listed in Tehran Stock Exchange (TSE) in Iran during period (2011-16) was calculated using Data Envelop Analysis (DEA) as one of effective tools by taking Window Analysis approach (length of panel: 2, 3, and 4 years), then the efficiency trend in these firms was examined in terms of increase or decrease of efficiency over the time and finally corporate efficiency was identified as well. Besides, the relationship among working capital management and the efficiency of companies was explored with Generalized Method of Moments-GMM. The findings indicate that average collection period negatively affects efficiency at significant level and while the variables of sale growth and current ratios positively affect the firm efficiency

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